What is Pay for Success?

This article defines Pay for Success as an innovative financing model that directs resources towards effective social programs by focusing on measurable outcomes. It outlines four core principles: clearly-defined outcomes, data-driven decision making, outcomes-based payment, and strong governance and accountability. The model encompasses various tools like Social Impact Bonds and Career Impact Bonds, aiming to accelerate social change by aligning public, private, and nonprofit sectors to tackle complex social challenges with a focus on demonstrable results.